May the bots be with you! Delivering HR cost-effectiveness and individualised employee experiences in an MNE

Abstract

Using an in-depth qualitative case study design, focusing on a significant global technology consulting multinational enterprise’s (MNEs) subsidiary in India, this research analyses interview, documentary and observational data for insights on the proliferation of artificial intelligence (AI) in human resource management (HRM). By developing HRM-focused, AI-enabled applications, the MNE improved HR cost-effectiveness and offered a hyper-personalised and individualised employee experiences. Employing the theoretical lenses of individualisation of HRM practices, AI-mediated social exchange, job signalling and person-organisation fit theories, this research explains employees’ experience of HRM practices and its impact on their attitudes and behaviours. Ten interviews were conducted with global technology leaders, champions of innovation, senior HR leaders and employees, including those engaged in the design and implementation of HR-focused AI applications. Findings suggest the use of AI-enabled bots, virtual, digital and personal assistants for carrying out a range of HRM tasks, such as routine, analytical, interactional and communicative tasks involving employees. A diverse set of HRM-focussed AI applications operant at this MNE contributed to its HR cost-effectiveness and enhanced the overall employee experience, thereby resulting in improved levels of employee commitment, satisfaction and reduced employee turnover behaviour. Implications for research and practice are also discussed.